Clampett, Inc., has been an S corporation since its inception. On July 15, 2020, Clampett, Inc., distributed $52,500 to J.D. His basis in his Clampett, Inc., stock on January 1, 2020, was $30,500. For 2020, J.D. was allocated $10,250 of ordinary income from Clampett, Inc., and no separately stated items. How much capital gain does J.D. recognize related to Clampett, Inc., in 2020?

a. $62,750

b. $52,500

c. $20,250

d. $11,750

e. non of these above

can you explain it with equations?